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AIR 2012 SUPREME COURT 3791
::2012 AIR SCW 3622
Supreme Court Of India
(From : Delhi)
Hon'ble Judge(s):
B. S. Chauhan,
Dipak Misra
, JJ
(A) Constitution of India , Art.246— Delegated legislation - Rule framed by delegatee - Cannot travel beyond Parent statute - Cannot also go beyond rule making power conferred by Statute. If a rule goes beyond the rule making power conferred by the statute, the same has to be declared ultra vires. If a rule supplants any provision for which power has not been conferred, it becomes ultra vires. The basic test is to determine and consider the source of power, which is relatable to the rule. Similarly, a rule must be in accord with the parent statute, as it cannot travel beyond it.(Para 16) (B) Foreign Exchange Management Act (42 of 1999) , S.20, S.21, S.46— Appellate Tribunal for Foreign Exchange (Recruitment, Salary and Allowances and Other Conditions of Service of Chairperson and Members) Rules (2000) , R.5— Composition of appellate Tribunal - Part time member - Concept of introduced by R. 5 - Does not conform to Act - Also goes beyond rule making power - Proviso 1 and 2 of R. 5 are therefore ultra vires Act. The Appellate Tribunal has been conferred jurisdiction to decide an appeal from orders passed by adjudicating authorities and Special Director Appeal and it has to deal with matters relating to foreign exchange. A fixed tenure has been s....
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